Of the six million people who lived in a home owned outright, 875,176 had a weekly income of $4,000 or more, while from almost 10 million paying off a mortgage, 2.4 million were in the same wage bracket.
This line graph shows that the proportion of owners without a mortgage declined from about 42% in 1994–95 to 30% in 2019–20. This line graph shows that the proportion of owners with a mortgage increased from about 30% in 1994–95 to 37% in 2019–20.
Overall household home ownership rates in Australia (including dwellings with a mortgage and those owned outright) have hovered around 70 per cent since 1961.
It's increasingly common for Australians to head into retirement with a mortgage. This is true for about 6% of retirees, and that figure is expected to grow as housing prices rise faster than earnings.
Assuming that the average mortgage age in Australia starts somewhere between 25 and 34 years, then to work out the average age to pay off a mortgage in Australia, you just need to add a 25 to a 30-year term. This would make the average age to pay off a mortgage in Australia between 50 and 64 years.
How long, on average, does it take to pay off a mortgage? Most Australian home buyers' mortgages last between 25 to 30 years. The loan term depends on the deposit size, the cost of the property, and the mortgage lenders.
Below is a table that shows the figures of the monthly repayments on an average Australian mortgage per state as of January 2023. In 2020 when we wrote this blog the first time, the nationwide average mortgage repayments reported was just $1,755 per month.
While the average age borrowers expect to pay off their mortgage is 59, the number of survey participants who have no idea when they will pay it off at all stood at 16%. In 2019, 9% of those asked didn't know and in 2020, 11% gave this answer.
The number of Australians 'At Risk' of mortgage stress has increased by 486,000 over the last year as the RBA increased interest rates for nine consecutive monthly meetings. Official interest rates are now at 3.35% in February 2023, the highest official interest rates since October 2012 over a decade ago.
Income. This is the most important factor in determining how much you can borrow on your home loan. As a guide, it's best if your repayments don't exceed 30% of your after-tax salary. Use our calculators to get a good idea of what your repayments will be once you start making mortgage repayments on your new loan.
1.6% of Australians own 2 investment properties.
The average net worth for all Australian households in 2019–20 was $1.04 million. This was not statistically significantly different from $1.05 million in 2017–18, but an 19% increase compared with 2009–10 ($878,200) was statistically significant.
The majority of Australians (78 per cent) believed the Government should restrict the amount of Chinese investment in residential real estate. However, the February 2022 NAB residential property survey revealed foreign buyers only accounted for 4.6 per cent of the Aussie property market.
27.6% of the UK population are homeowners without outstanding mortgages or loans.
According to available data from the OECD, the average Australian household debt-to-income ratio comes in at $187 for every $100 of after-tax income.
Key Points. According to new data, four in 10 Australians are experiencing some form of financial difficulty. NAB's latest Financial Hardship report says this is the highest rate since the start of the pandemic. Advocates say resources available are "inadequate" and are calling on the government to increase support.
Based on the predictions of the big four banks, we may see interest rates fall again in late 2023 or late 2024.
What are the benefits of being mortgage free? Having more disposable income, and no interest to pay, are just some of the great benefits to being mortgage free. When you pay off your mortgage, you'll have much more money to put into savings, spend on yourself and access when you need it.
Paying off your mortgage early can save you a lot of money in the long run. Even a small extra monthly payment can allow you to own your home sooner. Make sure you have an emergency fund before you put your money toward your loan.
It's typically smarter to pay down your mortgage as much as possible at the very beginning of the loan to save yourself from paying more interest later. If you're somewhere near the later years of your mortgage, it may be more valuable to put your money into retirement accounts or other investments.
To successfully buy a $500k house in Australia, an individual will need to make around $100,000 per year to comfortably afford the monthly mortgage payments.
There are currently around 10.3 million properties in Australia and of these 6 million have mortgages against them.
The average annual income range for the Australian middle class is between AUD 46,000 and AUD 140,000.